Retailers and industry groups are warning that President-elect Trump's proposed tariffs could lead to soaring prices. But officials at TJ Maxx's parent company take a different view, saying the discount retailer could actually benefit.
TJX Companies CEO Ernie Herman said on an earnings call with analysts Wednesday that when there is “disturbance” in the market, it typically represents “an opportunity for our company.”
His comments related to a question about whether tariffs could have any benefit to off-price department stores' business models.
TJX Companies, Inc. also owns Marshalls, HomeGoods, HomeSense, and Sierra.
The proposal would impose a flat tariff of 10% to 20% on all foreign imports, and potentially impose additional tariffs of 60% to 100% on imports from China in particular.
“Manufacturers may introduce products early,” Herrmann said. “This could actually open up the opportunity for us to get more products at a price that is favorable to us, because we can take advantage of that opportunity.”
Herrmann declined to speculate on what might happen, but said the company is “well positioned to ensure we maintain a value differential” with competitors if tariffs are imposed. No matter what happens with tariffs, the company guarantees that “prices will remain proportionally lower, as they always have been.” Herman said.
According to Herman, if a brand faces tariffs in a particular category and is forced to raise prices, and those higher prices are passed on to other retailers, the price of that particular product could rise slightly. It is said that there is. However, he said, “Differences in values with our competitors are never a problem.''
The comments came after Walmart CFO John David Rainey said the proposed tariffs could lead to higher prices for shoppers.
“Tariffs are going to cause inflation, there's no disputing that,” Rainey said in an interview with Liz Claman on Thursday's “The Claman Countdown.” “Consumers will likely end up paying more for items that they pay for and are subject to these tariffs.”
A Walmart spokesperson said in a statement to FOX Business that the company “remains concerned that a significant increase in tariffs could result in increased costs for our customers as we still feel the lingering effects of inflation.” .
Executives did not speculate on how much prices would rise or which products would be affected if the proposal goes through.
However, the National Retail Federation (NRF), the largest retail trade group in the US, recently found that President Trump's proposed new tariffs could cost US consumers between $46 billion and $78 billion annually in purchasing power. We estimate that there is.
NRF also said six categories of goods will be affected, including clothing, toys, furniture, home appliances, footwear and travel goods.
The trade group said some U.S. manufacturers may benefit from the tariffs, but the gains for U.S. producers and the Treasury will not outweigh the losses for consumers overall.
